The Australian distributor of the popular kitchen appliance Thermomix will face the Federal Court over allegations it breached Australian Consumer Law.
The action, brought by the Australian Competition and Consumer Commission, alleges that Thermomix misled customers about their consumer guarantee rights and engaged in misleading conduct regarding the safety of the TM31 model.
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It further alleges that the distributor, Thermomix In Australia Pty Ltd (TIA), failed to comply with mandatory reporting requirements for injuries arising from the use of the appliances, asked consumers to sign non-disclosure agreements and made false and misleading statements about its 2014 recall.
ACCC acting chairwoman Delia Rickard described the action as a "major matter" for the regulator, because it addressed core concerns about the importance of mandatory reporting.
"When a supplier becomes aware a product has caused serious injury, letting the ACCC know about that injury within the two day mandatory reporting period is so important, so we can check it out and stop others being injured," she said.
The watchdog first launched an investigation into Thermomix in August last year, after several incidents in which people claimed they suffered burns from mixers and were made to sign confidentiality agreements.
Helen Kerry is one consumer who spoke to Fairfax Media last year, after the home kitchen device left her with superficial partial thickness burns to her arms and chest, preventing her from breastfeeding her daughter for weeks.
"I was slowly turning the dial, to puree the vegetables and the cup at the top flew off and just drenched me and the kitchen in this 100-degree liquid," she said in May last year.
Federal Court documents filed by the ACCC allege certain Thermomix customers were advised they could only obtain consumer law remedies by signing agreements containing non-disclosure terms and others that prevented them from making negative comments about the brand.
They also state that TIA continued to supply and promote the TM31 model until at least September 6, 2014.
This was despite having recorded at least 387 service jobs since December 2013, "which identified the lid or seal of the TM31 leaking, opening, moving to the open position, unlocking or being too loose".
The court documents go on to argue that TIA continued to promote the model despite the fact it was "aware of at least nine incidents in which consumers had sustained burns constituting serious injury ... while the TM31 was in use".
"Once you are aware your product is causing safety issues - which we are alleging [TIA] were - you really have an obligation to work with us and see if a recall is necessary," Ms Rickard said.
It is alleged there were at least 14 occasions between June 2012 and July 2016 when TIA failed to give written notice to the ACCC within two days of becoming aware of a serious injury (burns) suffered by an individual, caused by the use or foreseeable misuse of a TM31.
"We also want to address the way in which they really downplayed the risks involved with the TM31 ... in their original media release. It's really important you play it straight with consumers when there is a safety problem."
In a statement TIA said it had been aware of the ACCC investigation for some time and was fully cooperating.
"As always, our highest priority is the wellbeing and satisfaction of all our customers, consultants and partners. As the matter is subject to legal proceedings it wouldn't be appropriate for us to comment further at this time."
Matt Levey, director of campaigns for consumer group Choice, said the allegations against Thermomix were "serious and go to the heart of Australia's product safety protections".
"It's further evidence of why the government needs to lift the veil of secrecy from mandatory product safety reporting," he said.
In May last year, Choice presented the ACCC with Australia's first mass incident report on product safety, detailing 87 Thermomix cases.
The ACCC is seeking declarations, pecuniary penalties, injunctions, corrective publication orders, compliance program orders and costs.
The first case management conference is scheduled for July 21, before Justice Bernard Murphy in Melbourne.